MANILA, Philippines ? Contracts for the exploration and development of up 10 prospective oil and gas areas in the country are expected to be auctioned off once the Department of Energy (DOE) gets a new man at the helm.
The DOE has already identified 16 prospective sedimentary basins which, according to reports, collectively hold 25 million barrels of oil, 2,135 billion cubic feet of gas and about 54 million barrels of condensate.
Energy officials refused to comment on the potential worth of the untapped resources, but one observer said that it could very well run into billions of dollars.
Energy Undersecretary Ramon Allan V. Oca said the petroleum sites being offered to investors were located within the Cagayan Valley Basin in the north, Agusan-Davao basin, Northwest Palawan Basin and the Sulu Sea Basin along the western flank of the archipelago.
?We?re still reviewing the sites. We?re still checking if these are within protected areas or sanctuaries to avoid (potential) environment issues,? said Oca, who explained that the DOE would coordinate its action with the Department of Environment and Natural Resources.
Oca said such steps would be necessary because it could prove difficult and costly for investors to stop their exploration activities once a site has been determined to be a protected area.
These prospective oil and gas areas, to be presented to the new energy secretary, will be offered under the Philippine Energy Contracting Round (PECR).
PECR is a public bidding round aimed at encouraging companies to invest in the country?s energy sector. These contracting rounds, which showcase potential areas for exploration and development in the country, are expected to spur investments and help cut costly oil imports.
But the planned PECR for petroleum has been pushed back several times due to transition problems, following the resignation early this year of Angelo T. Reyes from the post of energy secretary.
The content of the untapped resources in the 16 sedimentary basins was culled from a study called Philippine Petroleum Resource Assessment, which was conducted in early 2000.
